- On-chain data reveals a strong position for Cardano Bulls, with a favorable order book and demand exceeding supply by nearly 20 million ADA.
- The current market dynamics suggest a potential surge to $0.5 in December 2023, supported by the reclaiming of the $0.38 territory and bullish indicators on the daily time frame.
Cardano’s native cryptocurrency ADA has been recently on investors’ radar trading 2 percent up and moving closer to $0.40 levels. Over the last month of November, the ADA price has already registered 28 percent gains, and reportedly the party has just started.
Citing historical trends, some market analysts believe that the ADA price can rally an additional 67.5 percent in December 2023. If Cardano follows its established historical trend, there’s a possibility of surging from its current value of $0.3819 to $0.6397 by the month’s end. The optimistic outlook in the market relies on crucial metrics and the potential for positive flips in Cardano’s performance.
Currently, ADA boasts a market capitalization of $13,497,843,106, reflecting a 1.54% increase. The trading volume is aligning with the bullish sentiment, rebounding from a 6 percent decrease to reach $259,270,427.
Looking at the Historical Performance of Cardano
Data from Cryptorank.io indicates the potential for Cardano to conclude December positively, given its historical performance in the past two years.
According to the data, a pattern has emerged in Cardano’s December pricing since 2018. In December 2018, ADA experienced a 6.12 percent increase, followed by an 18.6 percent decline in December 2019. This cycle continued with a 6.44 percent gain in December 2020 and a 15.9 percent slump in December 2021.
The collapse of FTX and the impact of the crypto winter led to a 23.1 percent decline in December 2022, prompting a logical assumption of a potential bullish trend by the end of this month.
The extent of this growth is subject to change, especially if Input Output Global (IOG) maintains its impressive developmental efforts and introduces a groundbreaking innovation that could alter the overall outlook.
LuckSlide, a crypto market analyst and YouTuber, expresses optimism about Cardano, foreseeing a bullish uptrend for the cryptocurrency this month. This positive outlook marks a departure from the relatively bearish trend Cardano has experienced since August 2022.
The bullish sentiment surrounding Cardano is echoed by other prominent market analysts. Projections indicate that the final weeks of this year could witness a momentum in ADA’s price that has not been seen before.
Strong Order Book
On-chain data indicates that Cardano bulls are eyeing further increases in December. According to IntoTheBlock’s Aggregate Exchange Order Books chart, a crucial on-chain metric, recent data from the trading logs of 10 crypto exchanges suggests a favorable position for Cardano bulls. The chart reveals that bullish ADA traders have initiated buy-orders for 285 million ADA at an average price of $0.38. In contrast, sellers have listed only 276 million ADA coins for sale at current prices.
Courtesy: IntotheBlock
The Exchange Order Books chart illustrates the distribution of buy and sell orders for an asset across various crypto exchanges. Currently, the demand for Cardano in the market surpasses the available supply by nearly 20 million ADA, indicating a clear advantage for bullish traders.
When demand exceeds supply, the resulting scarcity tends to exert upward pressure on the asset’s price as buyers compete to quickly fulfill their orders. If this market dynamic persists, Cardano’s price could potentially reach $0.5 in December 2023.
ADA Price Action
Having reclaimed the $0.38 territory at the close of November 2023, the recording of 285 million new purchase orders this week positions ADA for further gains. The daily time frame, as indicated by the Bollinger Band technical indicator, supports this bullish outlook. It suggests that ADA’s price has recently surpassed the 20-day Simple Moving Average at $0.37, signaling a rising bullish momentum.
However, potential resistance may be encountered at the upper Bollinger band of $0.40. A decisive breakout above this range could propel Cardano’s price to achieve a new peak in 2023, possibly surpassing $0.45.
In the event of a downward movement, the optimistic ADA price projection could be undermined by bearish forces succeeding in pushing the price below $0.30.
Nevertheless, the presence of a supportive buy-wall near the lower Bollinger band, particularly in the $0.35 region, is anticipated to offer robust resistance in the short term.
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